Recently Listed Jinjiang Inn Still Encountering Expansion Constraints

Like many expanding Chinese businesses, hotel chains have often moved towards rapid expansion at the expense of management optimization and internal controls. However, Jinjiang Inn Company Ltd is one hotel chain that plans to differentiate itself from its competitors through sufficient branding and a three-year plan for expansion. Founded in 1997, Shanghai Jinjiang International Hotel Management Co Ltd (SJJIH) was successfully listed in Hong Kong in December, 2006.The first Jinjiang Inn opened at a time when the concept of a "budget hotel" was still in its infancy in China. At the time, some business travelers found it difficult to accept the name "Jinjiang Inn," since it seemed to imply "low-class," or a lack of quality services, rather than the unfamiliar concept of "budget." "The market's immaturity in its early stages was the biggest obstacle to our course of development," said Yu Meng, executive vice-president of Jinjiang Inn.Through its own travel agency, and by providing transportation to tourists, SJJIH was able to secure a sizable client base for Jinjiang Inn when it first opened.

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